Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Research Article: 2021 Vol: 20 Issue: 4S

The Possibility of Adopting Organizational Health as an Approach to Investing Human Capital: An Analytical Study in Nineveh Education Directorate

Maysoon Abdullah Ahmed, University of Mosul

Ibrahim Muhammad Jassim, Northern Technical University-Nineveh Technical Institute


 Today, the world lives in an era of escalating competition, as a result of a number of economic, social, political, technological and legal changes affecting the human resource, in addition to the continuous and growing growth of competition, in addition to increasing the intensity of competition in the field of administrative work, and this has become imperative for these organizations to invest human capital in a way Correct and knowing its ability to form and teach the human resource, in order to reap the learning outcomes in adding new and continuous additional values to the organization, And to prepare the human resource through the development of many administrative skills, among which the organizational health of the organization, and in order to obtain the trained and efficient human force capable of applying the new administrative philosophy, hence the research problem came with a set of the following research implications: Does the research organization have mechanisms Actual investment of human capital? And the extent to which organizational health contributes to investing human capital? The data was collected using the distributed questionnaire form, and using the SPSS program to process this data, a set of the following conclusions have been reached:


  1. The respondents agreed on the importance of the general index (investing human capital) in the field of work, and this was shown by the results of the mean for this indicator.
  2.  It was found through a test of correlations between the research variables in the researched directorate, there is a positive correlation between organizational health and human capital investment according to the correlation coefficient at the macro level.


Human Capital, Investment with Human Capital, Organizational Health

Research Methodology

Research Problem

The research problem was embodied in what the researchers observed through field visits to the reality of the work of the research sample. This is due to the existence of a gap that assumes the necessity of adopting organizational health as an entry point for investing human capital in the directorate in order to create a state of integration between the two variables above in order to reach catalytic solutions agreed upon by decision makers in organizations.

Today's organizations need creative talents and skills in order to use organizational health to invest in human capital. The dimensions of the problem were determined through its elaboration of the following question:

• Does the researched organization have actual mechanisms towards investing human capital? And

• The extent to which organizational health contributes to investing human capital?

Research Objectives

In light of answering the questions mentioned in the problem, a number of objectives can be formulated, including:

A. Establish a theoretical framework for the researched organization for the success of organizational health and in a manner that leads to investment of human capital.

B. Helping business organizations in how to benefit from the organizational health of investing human capital.

C. Emphasis on employing organizational health to invest human capital within the framework of competition and reaching the desired goals.

D. Enhancing the role of business organizations in benefiting from organizational health in investing human capital.

The Importance of the Research

The importance of the research can be determined from the following points:

? Show the role of organizational health in investing human capital in business organizations.

? Emphasizing on business organizations by taking advantage of organizational health to invest human capital in organizations.

? Activating the role of the organizations in the subject of the research in order to achieve the best results and desired returns within the framework of their vision, mission and specific goals.

? Make a contribution in the field of specialization by researching the links between organizational health and human capital.

Research Hypotheses

The first hypothesis: There is no significant relationship between organizational health and human capital investment.

The second hypothesis: There is no significant effect between organizational health and human capital investment.

Research Limits

• Spatial limits: The research was conducted at the Nineveh Education Directorate.

• Time limits: from 1/6/2019 to 3/15/2020.

• Human limits: The research was conducted on a sample of directors of divisions, divisions, and units of both sexes in the respondent organization.

Information Collection Methods

Numerous research methods were used, and the researchers used the theoretical side to facilitate Arab and foreign scientific references (articles, letters, and theses, books, research, conferences, information network (Internet) related to the research topic). As for its field aspect, the researchers adopted the method of interviewing with a number of heads of departments, divisions, and units during field visits to the researched organization. The questionnaire was approved as a main tool in data collection and the Likert five-point scale was used in collecting the questionnaire scale.

Analysis Tools

The researchers relied on a number of statistical tools suitable for analyzing data and selecting research hypotheses, using the SSPS statistical program. It includes the following:

? Frequencies, percentages, arithmetic averages and standard deviations for describing and diagnosing research variables.

? The mediator: It is a set of values arranged in ascending or descending order.

? Multiple regression.

? Using (t) to determine the significant differences between search variables.

The Second Topic

First: Organizational Health

Organizational health is represented in providing a positive working climate, and it is one of the most important advantages that the organization can achieve for itself, its workers and customers, and yet most leaders ignore it despite its simplicity, its freeness and making it available to everyone who wants it.

The Concept of Organizational Health

Clear (Writer, 2018) that organizational health is the ability of an organization to work effectively, deal with change appropriately, and grow through it resulting in high performance. (Launción, 2015) pointed out that organizational health expresses in its essence the value of integration, but not in the moral and moral concept, because an integrated organization that enjoys good health is the one that integrates and harmonizes all its aspects, so that the organization’s management, operations, strategies and work culture coalesce with each other, to pronounce their goals, message and vision.

Any organization that truly aspires to achieve success and prosperity should adopt two basic characteristics: intelligence and health. It was defined by (Rajabian, 2012) as the set of skills and talents used and enjoyed by workers in the organization in order to achieve its goals ideally, and was also identified by (Sivapragasam & Raya, 2011) as an important part of the organization that aims to achieve differentiation by creating an appropriate work environment for workers to activate their capabilities that contribute positively to achieving the goals of the organization. Brunn (2001) defines an organization's health as (its body, mind and soul).

The Importance of Organizational Health

He explained (Sivapragasam & Raya, 2013) that the importance of organizational health is determined in its high ability to meet workers' needs for well-being, productivity and positive self-experiences, A distinction can be made between health and non-health organizations by relying on organizational health, and this concept contributes to an understanding of how individual and organizational factors interact in workers and the resulting consequences that would increase the performance of workers through increased and overwhelming factors, through increased motivation and increased efficiency, and the competitive spirit between them. Zulkey, (2019) indicated that organizational health is much more than profit and loss, as the health of the organization depends on the ability to:

• Adapting a clear vision, strategy and culture.

• Complexity with excellence and efficiency.

• Renew the organization's focus over time by responding to market trends and staying through creativity and innovation.

Organizational Health Objectives

The aim of measuring organizational health is not only to show the reality of the organization's condition, but also to prepare improvement and development plans that are based mainly on the results reached. And that the organization, being healthy or unhealthy, requires evidence and evidence of change and renewal, and measures lead to building basic concepts for identifying indicators of solutions and identity for organizational problems by identifying the strengths of the organization's weakness, opportunities, constraints or threats that arise through measuring the health of the organization, which leads us to support more sources of strength factors and to improve and develop the organization's weaknesses (Yuceier et al., 2013).

Organizational Health Prescriptions

Gagnon, John & Theunissen, (2017), they identified four attributes of organizational health as shown in Table 1 that will be adopted in this research:

Table 1
Four Attributes of Organizational Health
No. Description Procedures and steps
1 Leadership factory Organizations that drive performance by developing and deploying strong leaders, and supporting them through training, formal training, and sound growth opportunities.
2 Continuous improvement Organizations that gain a competitive advantage by engaging all employees in driving performance and innovation, collecting ideas and sharing knowledge.
3 Talent and basic knowledge Organizations that accelerate their performance by attracting and inspiring top talent.
4 Market trends Organizations that move forward through innovation at all levels and use their deep understanding of customers and competitors to implement these innovations.

Leadership Factory

Leadership plays a vital and important role in the life of organizations. The leader is responsible for coordinating the efforts of his subordinates, motivating them, improving their performance, and raising their morale so as to achieve the goals of the organization in an atmosphere of complete satisfaction of the workers. A leader is not born in a moment, but rather develops and grows through hard work, tireless effort, and awareness of several elements that influence his success. Olsen (2006) indicated that understanding the differences between responsibilities and duties is the first step to achieving a leadership balance that reflects the consistency of the shared vision and expectations for the organization. Kottler (1998) emphasizes the possibility of creating and nurturing an environment that adapts to change depending on the availability of administrative leadership, which in turn is an indication of the distinction between successful cultural changes and those that fail, as the leadership that inspires and motivates followers and cares for their individual feelings helps to form a culture that adapts to the changes that occurs at the organization.

The role of strategic leadership comes with its set of practices (Hitt et al., 1998), which are as follows: (Al-Madhidi, 2012)

a. Building core dynamic capabilities.

b. Focus on building human capital.

c. Effectively use the new technology.

d. Preoccupation with precious strategies.

e. Building a new organizational structure and culture.

f. Continuous improvement

Jabo (2010) considered the leadership dynamics as a form of training that can, through analyzing and improving the processes that are used for decision-making, problem solving and conflict resolution, to enable them to work better, and hence the group dynamics.

Continuous Improvement

Job performance is one of the important criteria in the productivity of every organization. This also has a significant and positive impact on the efficiency and effectiveness of organizations. As (Montazeri, 2017) notes that the continued growth and improvement of the organization is an important issue that has drawn the attention of many scientists to the health of the organization. Organizational health is not only the ability of the organization to perform tasks effectively, but also includes the organization's ability to grow and continually improve. (Khalesi et al., 2013) emphasized that organizations can make improvements in the knowledge and behavior of workers by creating harmony among members and through continuous improvement and growth. (Parsaeemehr, 2016) explained that the appropriate internal regulatory environment leads to continuous improvement. (Kearns, 2014) showed that organizational health education programs should be linked to the organization's stated principles, goals, policies and practices. This ensures that all workers receive the information and skills necessary to work for continuous improvement based on clearly defined results and with regard to health, knowledge support is especially important.

Talent and Basic Knowledge

(Al-Humaidi & Al-Tayyib, 2012) explained that global experiences indicated that effective investment in human resources makes these organizations competitive, and this investment is best embodied in talent management, in this age in which we live, which is characterized by continuous change, Talent has become a highly valued human capital, which has made talent management, good employee selection, and talent discovery and development a top priority as explained by (Siam, 2013). Excellence, as indicated by him (Al-Jarrah, 283), has become an essential element for survival between organizations and it has become natural for there to be a strong interest in talent management in contemporary organizations, which is an unimaginable force, as contemporary organizations care about their presence as a striking force to ensure growth processes and to continue as well as to achieve its goals and strategies effectively and competently

Market Trends

(Renner, 2017) indicated it is a market-focused recipe for organizations that have a strong external relationship with customers, competitors, stakeholders, business partners, and the general community. The goal of these organizations is to create innovative products, shape market trends and build a strong brand portfolio in order to maintain a competitive position. It caters to customers' requirements while developing products that reshape the consumer market. Healthier organizations have a clear strategic and shared vision that ensures robust financial management, employee confident decisions regarding market opportunities, as well as correct responses to market trends for profit.

Second: Human Capital

Human capital has become familiar to many and is fairly common in our daily life, as human capital known in contemporary organizations is one of the pillars and requirements necessary for its success and survival in the business environment. Therefore, interest in human capital by organizations is a major responsibility of organizations that want to stay in the competition, whereas human capital leads the process of creativity and change, discovery and development of skills, and transforming that knowledge into a value that the organization has to be able to survive against its competitors.

The Concept of Investing Human Capital, its Theories, and Limitations

Alfred Marshall stressed the importance of investing in human capital as a "national" investment and in his view that the highest value of capital value is the capital that invests in the individual, it is through the individual that nations advance, and the economy itself has limited value if not exploited for the sake of progress, through the human forces that transform wealth from mere quantitative quantities to various technological energies that achieve the desired progress.

Investment in human capital was defined as a set of concepts, knowledge and information on the one hand, skills, experiences and performance elements on the other hand, trends and behaviors, ideals and values on the third hand that the individual gets through formal and informal education systems which contributes to improving his productivity and thus increases the benefits and the significance of his work. Alifi & Muhammad (2009) explained that spending the current money on the formation and education of the human resource, in order to reap the results of learning in adding new and continuous additional values to the organization through excellence, creativity and innovation in production or providing services, and this resource is inexhaustible but it is in a continuous giving (Al-Ziadat, 2008). It was used to denote a portion of society’s or individuals ’savings in developing the capabilities, skills, information and behavior of an individual in order to raise his productive capacity and thus the community’s overall energy to produce more goods and services that achieve prosperity for society as well to prepare it to be a“ good ”citizen in his community (Nazem, 2007).

Theories of Investment in Human Capital

Theories emphasized human investment in order to improve the skills and productivity of the individual, and estimate the value of human capital to determine the economic importance of the stock of human resources if this expression is correct and to determine the economic value of individuals for society as well as determine the economic profitability of human capital resulting from labor migration. And among these theories are the following: (Hajamawi, 2011)

1. Investing in education according to Schultz's theory of investing in human capital. Schultz focused his attention on the education process as an investment necessary for the development of the human resource and that it was a form of capital and then called education the human capital as long as it becomes part of the individual who receives it.

Schultz raised two important points in investing in education:

A- Ignoring and neglecting the study of human capital.

B- The moral or psychological factor related to treating education as an investment in the individual.

2. Investing in training according to Baker's theory of investing in human capital:

Training can be as an investment in the individual and his intelligence, and it becomes at the heart of the change process. This situation makes him new responsibilities. That is why he deals with training with the logic of investment and the cost of the turnover rate is closely related to the cost of specialized training. Given the high cost of specialized training, if the trainee leaves the job, this increases the amount of the organization's capital loss more than the loss in the case of general training, and therefore the organization has a willingness to pay a higher wage per person so that it maintains its survival to work in the organization so it does not bear a great loss by leaving his work.

3. Investment restrictions in human capital: The following are the restrictions that the organization must take into consideration when applying the concepts of investment in human capital: (Alifi & Mohamed, 2009)

• Different characteristics of human capital from the properties of physical capital, such as the lack of a link between the owner of human capital and human investment in a personal capacity, although an individual can lease an investment to the employer, he cannot sell it as the organization sells the machine it needs.

• The lack of data and methodological methods necessary to apply the human capital theory in the field of human resources, such as the difficulty of obtaining cost data or obtaining a sufficient sample size for individuals attached to training programs to reach specific and final cost calculations.

• The difficulty of determining the ratio of the cost allocated to both consumption and investment, as an individual spends on food, clothing, housing and health care, which is a necessary cost for continuing human investment.

• The difficulty of assessing and measuring the benefit derived from human investment, due to the fact that this benefit contains non-material factors and is not subject to market conditions such as literary status and self-realization.

The Second Topic: Field Framework

To complement the description and diagnosis processes of the research variables and with a view to checking the study hypotheses, as stated in its methodology, the current axis deals with analyzing the results of the field study and discussing it at the macro level. Therefore, analyzing and discussing the results will take the following paths:

First: The Correlation between Organizational Health and Human Capital Investment

The results presented in the table indicate a significant and positive correlation between organizational health (the interpretative dimension) and human capital investment (respondent variable) and at the level of the researched colleges if the overall index (0.776) at the level of significance (0.01), with this result, the first main hypothesis of the study has been fulfilled, which states that there is a significant correlation between organizational health and human capital investment as shown in Table 2.

Table 2
Correlation Coefficient Between Organizational Health and Human Capital Investment
Variables Organizational health
Human capital investment 0.776

Second: Analysis of Influence Relationships between Research Variables

This relationship measures the effect of the independent variable (organizational health) on the dependent variable (human capital investment)

In Table 3, it is clear that the investment of human capital is affected by organizational health according to the regression coefficient of 0.613) and by the value of the calculated (T) value (13.520) which is greater than its intrinsic value of 1.671 at a significant level (0.05), the moral relationship can be embodied according to the calculated value (F) (65.421) which is greater than its international value (4.001) and two degrees of freedom (1.78) at the level of significance (0.05) and the coefficient of determination that expresses the ability of the explanatory variables combined to interpret the respondent dimension, its value was (60.2), which means that (60.2%) of the explanatory variables revealed the changes that occur in the investment of the human resource, which is clear to us accepting the second hypothesis that there is a moral effect between organizational health and investing human capital.

Table 3
Effect of Organizational Health and Human Capital Investment
Dependent variable, Relied variable Organizational health   F
Human capital investment B0 B1 R2 Calculated Tabular
0.628 0.613 0.602 65.421 4.001
Table prepared by researchers based on the results of the electronic calculator=* P <0.05 N Calculated value (t), tabular value (t)=(1.671)

Conclusions and Recommendations


(1) The researchers reached the need of organizations to have the necessary structures for organizational health, including the research directorate necessary in view of the competitive environment in which they work, and to achieve this requires the establishment of administrative units that bring organizational health, nurture and develop within an organizational environment and environment and organizational structure that encourages organizational affiliation and loyalty with an approach humanitarian management to encourage organizational health.

(2) The research concluded that attention to organizational health is constantly taking care of and developing, due to its importance for the survival of these organizations, including the Directorate, through the role of managers, and encouraging and caring for creativity.

(3) The investment of human capital is of great importance in the directorate, and this explains the general pattern of the tendencies and trends of the individuals surveyed. This is shown by the arithmetic mean of this indicator, which is the richest variable.

(4) The respondents agreed on the importance of the general index (investing human capital) in the field of work, and this is shown by the results of the mean for this indicator.

(5) It was found through a test of correlations between the study variables in the respondent directorate, there is a positive correlation between organizational health and human capital investment according to the correlation coefficient at the macro level, which indicates that the respondents enjoy a good level of this growth.

(6) The results of the regression analysis showed that there is an impact relationship between organizational health and human capital investment.

(7) Human capital is the lifeblood of organizations, which can respond to unique needs, and to equip the content of its operations and support, which thus enables it to transform the current and future workforce into a high-performance workforce that is effective in achieving its mission, this is through understanding and enabling human resources for the roles they play in achieving them and managing their talents efficiently.

(8) Human capital is an essential and solid component of building organizations, which is an evolving stage of intellectual development, and therefore we find modernity to be directed to it by organizations. It represents the privileged elite of human resources that possess the ability to think, analyze, creativity and innovation by employing knowledge, experience, skill, high-value ability and high individualism.

(9) The organizations' diagnosis of its intangible intellectual assets represents the first step in building and developing its human capital and managing it effectively, as it is the most important organization resource that works to add value to the organization.


Depending on the researchers ’findings, a number of recommendations may be presented, perhaps the most important of them are:

1- Do not hesitate to apply new methods and take the risk to work for fear of failures, because this matter is of great importance to organizational health, and lack of fear of applying methods that have a large percentage of risk.

2- The need for departments in the research organization to consider the issue of organizational health, appropriate attention to its importance in providing an atmosphere that is useful in helping their institutions to adapt to the state of environmental change, regardless of the level of this change in a more effective way.

3- The necessity of the researched departments of the organization seeking to get acquainted with the experiences of the advanced organizations in the field of their organizations’s competence, whether through delegations, especially as they are readily available these days, for the purpose of transferring them to their organizations, and that they consider this as a national duty they must do.

4- The necessity for the higher management of the researched organization to encourage its employees to use creative methods, and to encourage them to think creatively at work.

5- Working to alleviate job conflicts at all levels and work to avoid them as much as possible by raising the spirit of constructive and meaningful dialogue when any problem occurs.

6- The necessity of employing the applied aspects (laboratories, computers, scientific auxiliary tools) to serve theoretical frameworks and in a manner that indicates the state of interaction between them.

7- Working with the idea of job monitoring and trying to absorb cases of job ambiguity among the working individuals.

8- Entering the same individuals working and discovering their reactions, in addition to knowing the stimuli that have a negative impact on them.

9- Encouraging researchers to expand their analysis of the basic concepts of human capital and its dimensions.

10- The necessity of directing the directors of the directorate to adopt a stable entrance through which human capital can be judged and managed, as it represents an important field with the ability to lead change.

11- Paying attention to addressing human capital practices and critical success factors in the superiority of organizations in general and educational organizations in particular through study and analysis in order to benefit from valuable proposals in this regard, and the limited studies that dealt with the topic.

12- The necessity for the theorists, researchers and leaders of the colleges of the study sample to expand the discussion of the subject of human capital within the graduate seminars, in a way that contributes to increasing the intellectual enrichment.

13- Directing the departments of the research faculties to benefit from the researches and studies completed from their teaching staff in a manner that is compatible with the requirements of their excellence and the circumstances of the current stage.

14- The need for the directorate’s departments to pay attention to human capital planning for the importance of the role it plays in providing reliable bases for allocating the organization’s resources and planning its operations in obtaining talent and through the familiar strategic planning mechanisms.

15- As long as the contemporary war experienced by organizations is a war of brains of high value and uniqueness, there must be a methodology adopted by the research organization to own, develop and retain it through:

A. Attracting and attracting it from abroad, and by providing material and moral incentives that are compatible with its goals.

B. Creating these minds within colleges and institutes through development courses and optimal investment for them.


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